HERC Cost Effectiveness Analysis Seminar

Introduction to Markov Models for Cost-Effectiveness Analysis – Part 1

by Mark Bounthavong, PhD, PharmD, MPH
Seminar date: 2/14/2024

Description: used in health technology assessments to simulate the costs and benefits of a disease using transition health states. A patient can experience multiple health states during the course of a disease, which will include healthcare expenditures and benefits. These can be aggregated to summarize the total costs and benefits of an intervention, which can be used for comparisons with other interventions. This two-day seminar will review the basics of the Markov model for pharmacoeconomic analysis. The seminar will also include a tutorial on how to perform a Markov model in Microsoft Excel. The first day of the seminar will review the basics of the Markov model, its strengths and limitations, transition state probabilities, and calculations. The second day of the seminar will go through the steps to construct a Markov model using Microsoft Excel. Audience members will be given access to the seminar files, which will be stored on the seminar’s GitHub site.

Target Audience: This seminar series is primarily designed for researchers who would like an introduction to methods of cost-effectiveness analysis and budget impact analysis as applied to health services and medicine.

View archived session video:

DOWNLOAD: PDF handout | Audio only (mp3) | transcript

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